Bonds: Gilts gain amid safe-haven flows after CDC tells US to prepare for outbreak

These were the movements in some of the most closely-followed 10-year sovereign bond yields:

US: 1.31% (-6bp)

UK: 0.50% (-5bp)

Germany: -0.53% (-3bp)

France: -0.25% (-2bp)

Italy: 0.99% (+2bp)

Spain: 0.21% (+0bp)

Portugal: 0.24% (+1bp)

Greece: 1.07% (+6bp)

Japan: -0.11% (-5bp)

Longer-dated Gilts jumped on Tuesday, tracking gains in similarly-dated US Treasuries after the Centres for Disease Control told Americans to prepare for an outbreak of the coronavirus in the country.

Nancy Messonnier, director of the CDC's National Center for Immunization and Respiratory Diseases, reportedly said: "It is not a matter of if, but a question of when, this will exactly happen."

If the virus spread in the States, then Americans should be ready for school closings and for the cancellation of public events such as concerts and business meetings.

White House economic adviser Larry Kudlow however called for calm, saying that the virus had been nearly contained.

The Federal Reserve's number two, Richard Clarida, sounded a similar note.

Speaking at the National Association of Business Economists, in Washington D.C., Clarida said: "We are closely monitoring the emergence of the coronavirus [...]

"But it is still too soon to even speculate about either the size or persistence of these effects, or whether it will lead to a material change in the outlook."

To take note, gains for Gilts came despite strength in Sterling amid safe have flows.

Meanwhile, on the Continent, Spain reported five new coronavirus cases, all with links to Italy, and placed 1,000 tourists at a resort in Tenerife under lockdown after two of them tested positive.

In parallel, Austria, Croatia and Switzerland announced their first virus cases, one each in the first two countries and a further two in the latter - all the cases were linked to Italy.